Abbey's return will hot up competition in sector
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Abbey for Intermediaries’ long-anticipated re-entry into buy-to-let has been welcomed by the sector.
The lender first revealed it was planning to return to the market in November 2010 after pulling out in 2008, and last week launched two products for non-
It is offering a two-year fix at 4.29% available up to 60% LTV, and a two-year fix at 5.19% up to 75% LTV, both with a £1,495 fee.
The products are available to existing home owners with up to two buy-to-let properties and require rental cover of 125% or above, as well as a minimum purchase price of £100,000.
Phil Cliff, director of retail assets at Abbey, says: “The buy-to-let market has seen strong growth in 2011 as demand for quality rented accommodation in the private sector continues to rise. This range is designed to meet the needs of new or small volume landlords adding a first or second buy-to-let property to their portfolio.
“We expect strong interest from intermediaries and their clients.”
Andy Young, chief executive of TBMC, says he is delighted to see a lender of Abbey’s size in the sector as it will provide some much-needed competition.
He says: “It is a cautious launch but that is understandable. As Abbey builds up its buy-to-let book over the next few years I am sure that it will look to en
hance its product offering.
“The rates do not jump off the page but I would not expect them to on day one. They are part of a package that has been designed for a soft launch.”
One broker commenting on Mortgage Strategy Online says: “This is brilliant news. Let’s hope it brings out new rates in the new year.”
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